Benefits of using a 3PL

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Why Should You Switch To A Third Party Logistics Company For Your Freight Transportation Needs?


The primary goal of almost all profit-seeking organizations is to expand their business operations, trade with customers and find suppliers residing in different parts of their country, or even around the globe.

However, this growth-oriented mindset also brings with itself several challenges which the management has to overcome if it aims to grow in a sustainable manner. The solutions to such barriers often require organizational understanding and the cultural knowledge of the market they are moving into. Our focus in this blog is not only on these two management fields but we also look at how switching to 3PL (Third Party Logistics) can help companies meet the needs of their supply chain and logistical operations.

For large companies that are already operating in several different regions, this blog would be of help too. This is so because very often, the higher management of such companies is too occupied dealing with logistical challenges rather than to focus on their core competencies. Wouldn’t they greatly benefit from having some professional help in the supply chain division?

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Competitive Pricing

Because of the profitable market conditions in the logistics industry of North America, many 3PL companies have been operating in this region. With a vast amount of suppliers in any industry, Economics 101 tells us that the price of goods and services becomes competitive. And that is indeed the case with our logistics industry too.

The good news for your business is that by outsourcing your freight transportations needs, not only will you acquire the services of expert freight professionals, you will also save a considerable amount of money in the process. A double win for all businesses out there!

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Larger Network

Relying on the in-house logistics department always puts a geographical bound on the reach of a company’s product. After all, for a business residing in Orange County, California, there is only so much distance that its driver in a mini-van could cover.  

3PLs on the other hand provide you with a vast resource of network. Their team of trucks can easily cover vast distances and take your freight anywhere in Canada or USA, that too in the least possible time. Hire a 3PL service now to greatly expand the supply chain network of your company.

Ship Less than Truck Load or Full Truck Load

No need to worry if you don’t already know what these terms mean. LTL (Less than Truck Load) and FTL (Full Truck Load) are two of the very important options for businesses considering acquiring third party logistics services.

LTL is the more budget-friendly option and is ideal for businesses that are smaller in size or only have a limited amount of products they want to ship. Under LTL, you will only have to pay for the amount of space you occupy and the distance your products travel.

 FTL is usually for bigger companies. Use this option when you have enough goods to fill an entire truck, or want a dedicated truck to carry your fragile products.

Technology-Enabled Transport

 The use of latest software technology has greatly enhanced the performance of the supply chain sector. For individual companies, it is often too expensive and therefore unfeasible to purchase such software, but 3PLs have installed technologies such as TMS (Transportation Management System). TMS will greatly optimize all your logistical operations.

 

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